I checked it out today (for the 3rd time or so) and even if I still like the concept, BTS as a DEX is not yet really usable for my day to day trading. The volume is very low and the coins traded are all inside the Larimer-Universe (BTS, STEEM, EOS). It has a hard path before it to convince other coins, icos and traders to come over from the crowded centralized exchanges....
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What about bitUSD and bitCNY? Liquidity and trading volumes have been rising rapidly. Give it a try and become part of the solution as the CEX's get taken down in the coming year.
How would bitUSD make me any money? If I wanted to hold USD, I wouldn´t be into Crypto. The issue of all DEX approaches (also of Waves DEX etc) is atm, that they only work around their own coins. I did some trading on Waves DEX, but it made only sense with the Waves/BTC pair and even there, I´d get better prices on Bittrex.
Trading with bitUSD could, indeed, make you money if you like playing the swings of the market. It's a good place to swap over to if you want to preserve what you made from a pump. Then wait for the dump and then buy back in for more than you had pre-pump. It's also a good place to go even just to rest from trading. This was also true of Tether, but I'm hard pressed to recommend Tether to anyone now given its recent behavior.
Sure, in a bearish market, Tether or bitUSD can preserve your funds - I also go into Tether when BTC is crashing, but on the other hand, I got many long term investments anyway and I´m not so dependent on BTC as many daytraders are. From the practical side, I would then sell my coins for BTC, send them over to BitShares and then convert it into bitUSD? It´s not very practical - also why should I believe, that the bitUSD token is more solid as Tether? It´s also just a token. Sorry for playing devils advocate here - maybe I just want someone to sell me BitShares as a real asset ;))
Tether and bitUSD are completely different models, they aren't both 'just tokens'. Tether is an IOU token that relies on a centralized third party for backing and has direct counterparty risk. The backing organization holds dollars in a bank account and you trust that they'll keep exchanging those dollars and their TetherUSD tokens 1 to 1.
BitShares bitUSD is a collateralized token with a very different risk profile. bitUSD tokens can be created by anyone, but each have to be backed by more than $1.75 worth of BTS as collateral or they get margin called, enforced by the rules of the BitShares blockchain.
Thank you for clarifying! I really believed, that they are the same. I guess, I´ve still not fully understood the concept of bitUSD - which makes me question, if it´s just me or the concept is not explained clearly enough....
So if bitUSD is always backed by more than $1.75 and everyone can create it, how do I know, who has issued the bitUSD I´m buying and how much it is backed in reality? In other words, this way it depends on who issues the bitUSD token and how much it´s really worth?
Maybe I´m stupid, but somehow I still don´t get it.... ;)
All bitUSD is fungible so it doesn't matter who issued the particular bitUSD you buy. The collateral requirement is enforced by the blockchain protocol, and the blockchain hosts an active exchange. If the value of any bitUSD issuer's the collateral drops below 175% of their bitUSD debt, the blockchain offers their collateral for sale on the exchange at up to a 10% discount from the current exchange rate to pay the debt. I like holding some bitAssets not so much for stability as so I can pick up cheap collateral off of margin calls after sudden drops. You can also 'force settle' your bitUSD and demand a dollar worth of BTS per bitUSD after a delay, which settles that amount of debt from the least collateralized issuer positions.
You can look at asset details on bitUSD here:
https://openledger.io/asset/USD
It's tragic how poorly marketed BitShares and its market pegged assets have been. It's a brilliant system for stability without counterparty risk, but most people who even know about it just think it's like Tether.
Tether's had some pretty bad press lately, and my trust for them is pretty thin.
https://www.coindesk.com/tether-claims-30-million-stable-token-stolen-attacker/
This is a fair point, but lack of volume can only be solved by adoption and investment, which will happen eventually if the system remains otherwise superior. How many more Mt. Gox events will it take before people leave the centralized exchanges?
There's money to be made being one of the first to provide liquidity on a trading pair also.
Yeah, there's been a lot of interesting activity on those exchanges lately as well, hasn't there? That's what prompted me to go ahead and migrate over to a bitshares wallet.
Which I can't argue with, however my intention is hodling.